As a fork of Bitcoin, BTCMobick uses the same Proof of Work mining technology. In this article I explain what mining is to make it clear, how mining makes this storage of value one of the safest in the world, what the mining reward is and how the supply was altered to fit the unique conditions of BTCMobick.
What is BTCMobick PoW Mining - How Bitcoin Mining Works
There are 2 mains ways to verify transactions on the blockchain:
PoW - Proof of Work
PoS - Proof of Stake
With Proof of Work, imagine a sandbox (blockchain) with puzzles that are like hard math problems (blocks on a blockchain) that need solving. The sandbox is full of children (miners) who want to be the first to solve these puzzles to get the reward (Bitcoin).
To solve the puzzles, the children use different toys (computers), and the more they have and the faster they are, the more likely they are to solve the problem first.
When one of the children wins the reward, the rest all agree that they were the winner and make sure there was no cheating (it's a very fair system with no arguing).
So in other words, Bitcoin requires time, energy and computing power to solve a block and receive a reward in Bitcoin.
Proof of Stake on the other hand works on people owning and locking up (staking) a token to secure the network - it doesn't rely on computing power, so it's less energy intensive.
BTCMobick Uses Mining For it's Superior Safety
Safety is the big difference between PoW versus PoS.
Oh Tae Min advocates PoW mining as being a much more secure and safe way to uphold the network. He argues that mining creates a vault where the cost of breaking it (energy requirements) becomes more than the value of what's inside.
Mining Rate Reward of Bitcoin and BTCMobick
Bitcoin has a total supply of 21,000,000 tokens which is estimated to be fully mined by the year 2140. Every 4 years it has an event called the "halvening" where the mining reward is halved.
It started with 50 BTC / block and is currently at 6.25 BTC / block. The chart below shows the correlation between the mining rewards and their value - as the network grows, the value of the block grows even though there is less reward.
Orange line = mining rewards
Blue line = value of rewards in $USD
BTCMobick has exactly the same mining rate as Bitcoin, and is currently being mined at 6.25Mo (BTCMobick) / block. The reward per block is very different, as 1Mo is worth $167.29 which is $1045.56 AUD ($670.72 USD) / block
If the early signs of the network are anything to get excited by, then we can expect some really good growth in terms of adoption and therefore price.
BTCMobick Token Supply Differences
When Oh Tae Min forked the network, all the existing BTC tokens were created as MO tokens, but he also tweaked the mining rate and supply so he could mine a further 14,000,000 tokens for public goods.
Its original price was decorrelated from Bitcoin's as the network grew with the airdrop.
As of around October, it became more correlated as it saw a +30% price surge when Bitcoin moved from $25k USD to $$37k USD.
If more money is moved from BTC to MO, then it should remain correlated but it's price increases should be more rapid than Bitcoin's.
Blue line = buy price
Gray line = average price
Orange line = sell price
BTCMobick uses the same technology as Bitcoin as one of the safest "vaults" to store value. It's inflation rate is the same as Bitcoins'and it mining rewards are the same as Bitcoin's. Because of this, the price should remain correlated over time, but BTCMobick should catch up if the network continues to grow. The big difference is in the token supply, and the values that can be brought to the network by the public goods.
Where do you think BTCMobick can go by the end of this coming bull market?